Here's Why Shareholders Will Not Be Complaining About Quanta Services, Inc.'s (NYSE:PWR) CEO Pay Packet

Key Insights

• Quanta Services to hold its Annual General Meeting on 22nd of May
• Salary of US$1.34m is part of CEO Duke Austin's total remuneration
• The total compensation is similar to the average for the industry
• Quanta Services' total shareholder return over the past three years was 212% while its EPS grew by 23% over the past three years

We've discovered 1 warning sign about Quanta Services. View them for free.

We have been pretty impressed with the performance at Quanta Services, Inc. (NYSE:PWR) recently and CEO Duke Austin deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 22nd of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Quanta Services

Comparing Quanta Services, Inc.'s CEO Compensation With The Industry

Our data indicates that Quanta Services, Inc. has a market capitalization of US$51b, and total annual CEO compensation was reported as US$16m for the year to December 2024. That's just a smallish increase of 6.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.

On comparing similar companies in the American Construction industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$12m. This suggests that Quanta Services remunerates its CEO largely in line with the industry average. Furthermore, Duke Austin directly owns US$223m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. Quanta Services pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Quanta Services, Inc.'s Growth Numbers

Over the past three years, Quanta Services, Inc. has seen its earnings per share (EPS) grow by 23% per year. In the last year, its revenue is up 16%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Quanta Services, Inc. Been A Good Investment?

Boasting a total shareholder return of 212% over three years, Quanta Services, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Quanta Services that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.